In This Guide
Apply for a mortgage
Buying at auction
Buying in Scotland
1. Overview of the process
2. Pre-offer process
3. Making an offer
4. Post-offer settlement
Conveyancing
Find and view
Negotiate
Plan your purchase
Success and failure
Surveys and valuations
To buy or not to buy
Buying in Scotland
Post-offer settlement
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Once your offer has been accepted, you are almost home and dry. It is very rare for anybody to pull out before things become official - and if they do you will almost certainly be able to get financial compensation - but don't go popping the champagne corks just yet. Before things are formalised, your solicitor must complete the missives.
Though it sounds like an arcane challenge, completing the missives is actually a bit like finalising the contracts in England. The two solicitors exchange letters and iron out any of the finer details that were not explicitly mentioned in the original. This may include such things as details of any fixtures and fittings that are actually staying, or perhaps a slight alteration to the entry date.
Once both parties are agreed on all of the details of the offer, which usually does not take long, the missives are said to be 'concluded'. This means that both parties have now entered into a legally biding contract from which withdrawal will undoubtedly incur a hefty compensation bill running into many thousands of pounds. This is the reason that it is vital that you are fully certain that your mortgage application has been completed and accepted before you make an offer. Acceptance of the offer and conclusion of the missives can happen very quickly and you need to be sure that you are able to proceed with the move at the pace specified in your offer. You also need to know that you have enough finances in place to cover the costs of the move, your solicitor's fees, the deposit and any other costs you will incur. Once the missives are concluded, you cannot decide that you have overstretched yourself and wish to back out, it's too late for that now.
Once missives are completed, you are also legally responsible for the structure of the property. Your lender may well insist that you have appropriate buildings insurance in place to protect the fabric of the property as soon as it becomes your legal responsibility. Even if they do not insist, you should probably make sure you arrange it as soon as possible anyway.
Part of the purpose of the missives is to set a formal entry date for the property, on which the transaction will be completed and you will be able to move in. This is generally set at around four or five weeks after the agreement of the sale, but can be a shorter or considerably longer period of time, at the discretion of the two parties involved.
Around two weeks before the entry date, you will receive a letter from your solicitor advising you how much you need to forward to them in order to complete the transaction. This will include money for your deposit, stamp duty and their fees. You are unlikely to be able to get the keys to your place until you have paid your solicitor. They are not stupid.
The day before entry date, the balance of the property price (the loan amount) will be transferred to your solicitor from your lender. After this has happened, there will be numerous papers for you to sign. You must have these witnessed by your solicitor. One of these is the title deed to the property, which will then get sent to your lender, where it will stay for the life of your mortgage. Once this has taken place, the bank has security over the property.
Finally, the seller's solicitor will then deliver the keys. They will also bring with them a document called the Disposition, which legally transfers the property to your name. This is the culmination of the settlement process and means that you are now free to move into your new home.
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